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Cairn Energy’s long-awaited sale of a large share of its Indian business to Vedanta Resources has cleared its biggest remaining hurdle after the state-run Oil and Natural Gas Corp gave the $6.2 billion deal its blessing.

ONGC, Cairn India’s partner, said that it had agreed to a compromise on how oil production royalties would be paid to the Indian Government.

Cairn India’s main asset is the Mangala oilfield in Rajasthan, India’s largest onshore oil project, pumping 125,000 barrels of crude per day. Under the original licence terms for that giant field, ONGC has been paying all the royalties despite owning